Reef Casino (RCT) have made their preliminary distribution estimate for the current half and updated operating results for the year.
With just under 4 weeks’ trading to go before the end of the financial year, our current estimate of the distributable profit* for the second half year 2020 is approximately $8.5 million, compared to 2019’s second half distributable profit of $5.2 million. The Trust has had a solid 2nd half year 2020 to date (particularly the 3rd quarter) with strong rental income received from the Reef Hotel Casino. The rental paid by the Reef Hotel Casino to the Trust was partly assisted by the approx. $2.4 million positive impact of the Federal Government’s JobKeeper subsidy on its overall results.
RCT reports on a calendar financial year. The first half result indicated that JobKeeper had contributed approximately $800 thousand to June 30 with the casino closed from March 23. Adjusting the $2.4 million JobKeeper amount from the current half would still make 2020 the best result since 2017, which would also be consistent with the extraordinary pokies numbers we have seen in this period. $2.4 million JobKeeper seems like a lot in the context of a robust result. The casino reopened for trading on July 3.
RCT is a complex structure for a relatively small group as mentioned in the previous post on 1H results so will await the annual results with more detail due in February. Previous post on first half loss: Reef Casino: Black to Red
The full year estimate is a small net loss before impairments of approximately $66,000.
Update from RCT: You are correct. $2,4 million is only the second half and doesn’t include the approximately $800K from the first half and RCT did not receive any JobKeeper directly. The annual report will include commentary.